Despite strong asset growth in 2024, Julius Baer is taking decisive action to tackle rising costs. Under CEO Stefan Bollinger, the private bank is streamlining leadership, cutting jobs, and expanding its savings program.

Julius Baer’s executive board is undergoing a significant reduction, shrinking from 15 to just five members. CEO Stefan Bollinger expects this move to enhance agility, entrepreneurial spirit and a strong client-centric approach.

At the same time, the new CEO signaled what lies ahead for the private bank’s employees: «We will apply the same principles throughout the entire organization. I am convinced that our clients and all other stakeholders will feel the difference,» he stated.

In concrete terms, approximately 5 percent of all positions – between 300 and 400 jobs – will be eliminated, with back-office functions being streamlined. Most of the layoffs will occur in Switzerland.

Cost/Income Ratio Remains Unsatisfactory

This move does not come as a surprise. Julius Baer has been grappling with cost issues for some time.

At the beginning of 2024, the private bank increased its cost-cutting target for the 2023–2025 program from 120 million Swiss francs ($131 million) to 130 million francs. According to figures presented on Monday, Julius Baer had already achieved gross cost savings of 140 million francs at end-2024. The total accumulated restructuring costs related to the program amounted to 39 million francs with 24 million francs booked in 2024.

Despite these efforts, the cost/income ratio remains unsatisfactory, standing at 70.9 percent – far from the originally set target of below 64 percent for 2025.

Additional Cost Saving Needed

As a result, the bank has decided to expand its ongoing cost-cutting program. By the end of 2025, it aims to achieve additional gross savings of 110 million francs on a run-rate basis, focusing on personnel and operating expenses. The costs associated with achieving these savings are currently estimated at approximately 55 million francs, which will likely be booked in 2025.

Simultaneously, Julius Baer is refining its strategy. The bank announced on Monday that it will present a strategy update, including new mid-term targets, before summer 2025. Further details, including the exact timing, are expected to be disclosed alongside the release of the 2024 annual report on 17 March 2025.